Tether Surpasses USDC in Payment Volume on BitPay in 2025

The stablecoin rivalry between Tether (USDT) and Circle’s USD Coin (USDC) has entered a new phase in 2025, with Tether taking the lead in payment volume on BitPay — one of the largest crypto payment processors globally.

After USDC dominated BitPay transactions throughout 2024, it has since seen a sharp decline in both transaction count and volume this year, according to data shared by BitPay.

In January 2024, USDC controlled 85% of BitPay’s stablecoin transaction volume, compared to just 13% for USDT. But by May 2025, USDC’s share fell to 56%, while USDT surged to 43%, rapidly closing the gap.

USDT Now Accounts for Over 70% of Stablecoin Volume

While Circle’s USDC still leads in the number of transactions, Tether’s USDT now dominates in dollar volume, marking a major turning point.

“Starting in March 2025, USDT gained a sizable share of transaction volume, exceeding 70% of stablecoin volume processed by BitPay,” the company stated.

BitPay attributed the shift to both an increase in stablecoin adoption and a growing preference for USDT among existing users and merchants, particularly outside of the U.S.

Regulatory Edge Fails to Stop Tether’s Momentum

Interestingly, Tether’s rise has come despite its refusal to comply with Europe’s Markets in Crypto-Assets (MiCA) regulation — a framework under which Circle became the first global stablecoin issuer to be fully regulated in mid-2024.

Tether USDt (USDT), USDC (USDC) and PayPal USD (PYUSD) payment volume share on BitPay since January 2024. Source: BitPay

While Circle launched a successful IPO on June 5, 2025, raising $1.05 billion, Tether CEO Paolo Ardoino confirmed that the company has no intention to go public and remains openly critical of MiCA, especially around reserve transparency and disclosure requirements.

“We’ve taken a different path focused on scalability, utility, and global adoption,” Ardoino said during a June Q&A.

USDC Still Growing Rapidly in Market Cap

Despite losing ground on BitPay, USDC’s broader market performance has been impressive:

USDC’s market cap has grown 88% year-over-year, jumping from $33 billion to $61.7 billion, per CoinGecko data.

In comparison, USDT has grown 40% in the same period, from $112.5 billion to $158.3 billion.

Year-to-date, USDC is up 41%, while USDT is up just 15.5%, suggesting USDC is still expanding its footprint in other sectors.

USDC (USDC) against Tether USDt (USDT) in market share since July 2024. Source: CoinGecko

Geographic and Merchant Preferences Fuel the Shift

Bill Zielke, Chief Revenue Officer at BitPay, noted that while USDC retains transaction count leadership, USDT’s transaction volume dominance reflects shifting user behavior.

“We’ve seen a noticeable increase in USDT usage, particularly in non-U.S. markets. European users and merchants are still important to us, but USDT’s traction is undeniable,” he stated.

BitPay continues to serve a broad global user base, but the momentum appears to be tilting in Tether’s favor — at least on platforms prioritizing high-volume payments.

Conclusion: Stablecoin Dynamics Are Evolving in Real-Time

The stablecoin battleground between Tether and Circle is far from settled. On one hand, Tether is thriving on payment platforms like BitPay despite taking a non-compliant stance on EU regulations. On the other, Circle is gaining institutional favor with regulatory approvals and a public listing — boosting trust among compliance-focused investors.

As the stablecoin market matures, expect to see continued divergence between volume dominance and regulatory preference, particularly across regional markets and use cases like cross-border payments, DeFi, and on-chain commerce.

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